December 31, 2020 Actuarial Valuation
Adopted by the Board on August 11, 2021
The valuation was presented by CCCERA’s actuary, Segal Consulting. The ratio of the valuation value of assets to actuarial accrued liabilities increased from 90.6% to 91.8%. The Association’s unfunded actuarial accrued liability (UAAL) has decreased from $947 million to $859 million. The decrease in UAAL is primarily due to contributions paying down a portion of the UAAL and cost-of-living adjustment (COLA) increases lower than expected, offset to some degree by individual salary increases greater than expected and an investment return on actuarial value (i.e. after asset smoothing) less than the 7.00% assumed rate.
The average employer rate calculated in this valuation (excluding any employer subvention of member rates or member subvention of employer rates) has decreased from 35.66% of payroll to 35.26% of payroll. This decrease is primarily due to amortizing the prior year’s UAAL over a greater than expected total payroll, COLA increases lower than expected, and the effect of changes in member demographics on Normal Cost, offset by individual salary increases greater than expected and an investment return on actuarial value (i.e. after asset smoothing) less than the 7.00% assumed rate.